States Leading and Trailing in the Housing Recovery

A solid showing in all categories helped Montana score well. Mortgage originations aren’t particularly high; the state ranks 38 out of 51 on that factor. But delinquencies and foreclosures are low, and credit scores are solidly high, coming in at 14th highest in the country.

Nebraska had a low rate of new loan originations. Similarly, delinquency rates and foreclosure numbers were low. And credit scores for those who live in Nebraska are strong; they come in at 12th highest nationwide.

South Dakota earned its spot with a very low delinquency rate, high credit scores and few foreclosed homes. If more mortgages were being originated there, it could have easily stolen one of the top two spots. But on new loans, it ranked a low 45 out of 51.

Being able to claim the spot as the state with credit scores higher than 48 states and the District of Columbia helped boost New Hampshire’s ranking. On all other factors the state is in the top 25% of the country, and it didn’t score poorly on any factor we considered.

Minnesotans, on average, have the highest credit scores in the country. Their rate of 90+ delinquencies is fairly low; they’re not in the top 10, but come close at the No. 12 spot. There isn’t a huge number of foreclosed homes available, and in terms of new mortgages, they are slightly lower than a majority of states (33 states rank better for this factor).

Credit scores in South Carolina rank near the bottom of the country (44 out of 51). Combined with a fairly high foreclosure inventory rate and a high rate of severe delinquencies, it wound up near the bottom despite ranking 15th in the country for new mortgages.

High delinquency and foreclosure inventory rates dragged Illinois’ ranking down. Credit scores, though, are about in the middle of scores nationwide, which should be helpful if the number of foreclosures and delinquencies can be curbed. The rate of new mortgages is fairly low when compared to other states and will have to be addressed for this state’s market to move forward.

Florida ranked dead last in mortgage delinquencies and foreclosure inventory. Residents’ credit scores aren’t great but aren’t the worst, either. (They ranked 38 out of 51 on that factor.) What saved Florida from the very last spot was a fairly robust number of new loans. In fact, the Sunshine State ranked eighth on new loan originations.

Unlike some of the other states on our list, Delaware doesn’t rank worst on any of the factors considered. But fairly high delinquencies, mediocre credit scores, a moderate foreclosure inventory and a relatively low number of new loans originated all combined to create a low overall score.

Nevada nearly leads the country in the percentage of mortgages that are delinquent (only Florida is higher), residents’ VantageScores are on average some of the lowest in the country, and it has a high foreclosure inventory. These factors combine to make it the state that is least likely to lead the housing recovery.